Featured Product

    DNB Publishes Multiple Regulatory Updates in August 2021

    August 18, 2021

    In the context of reporting by banks, DNB has updated additional data quality checks for the reference period September 2021 and revised the Excel format of the annual Article 23 Liquidity Coverage Ratio (LCR) DR qualitative data request template for the Dutch less significant institutions. The revised reporting obligation for the reference period July 2021 can be expected on Digital Reporting Portal (DLR) in mid-September, with the deadline for submission being October 15, 2021. DNB also announced its decision to not extend the recommendation that all banks limit dividend distributions. This decision is relevant for the less significant credit institutions and follows the ECB lead on this issue; the current ECB recommendation on dividend restrictions expires on September 30, 2021. Other regulatory updates of DNB relate to the dividend the proposed regulation on sound remuneration policies and the upcoming proposals on the implementation of the final Basel III Accord.

    In another recently published statement, DNB highlights that the Dutch banks are prepared for implementation of the final Basel III Accord, which the European Commission is expected to publish the proposals for this Autumn. DNB has also expressed its support for the European implementation of the Final Basel III Accord in a joint position paper with the Dutch Ministry of Finance. Though the impact of the final Basel III Accord on Dutch banks is expected to be significant, all Dutch banks will be able to meet these stricter requirements. In 2017, Dutch banks estimated they would need about EUR 14 billion of additional capital to meet the Basel III requirements, but the situation has improved since then. Banks will no longer face capital shortfalls on full implementation of Basel, even when taking various developments into account such as the withdrawal of the COVID-19 support measures. New calculations reflecting the situation at the end of 2020 show there is no longer a capital shortfall. According to these calculations, the capital level is EUR 12-15 billion above the requirements of the final Basel III Accord. This offers room to absorb the further effects of the COVID-19 crisis and/or to meet any additional needs in the future. This is good news for the Dutch banking system and it shows that the Dutch banking sector is well-prepared. 

    Finally, DNB announced that the consultation on the regulation on sound remuneration policies (Rbb 2021) did not result in any changes to the regulation. However, it was clarified after the consultation that the Authority for Financial Markets (AFM) is the supervisor that will decide on requests for an alternative arrangement. DNB had launched the consultation on the Regulation on Sound Remuneration Policies 2021 in April 2021. This 2021 regulation (Rbb 2021) is set to replace the Regulation on Sound Remuneration Policies 2017, with the changes in the Rbb 2021 versus Rbb 2017 mainly relating to the implementation of the Investment Firms Directive. DNB also announced that the entry into force of the Rbb 2021 has been delayed, as the Senate (Eerste Kamer) has yet to agree to the Implementation Act for the Directive on Prudential Supervision of Investment Firms. As the Implementation Act also dictates the use of two member state options included in the Rbb 2021, the latter can only be finalized once the Implementation Act has been adopted by the Senate. For this reason, the date of entry into force of the Rbb 2021 is also linked to the date of entry into force of the Implementation Act.

     

    Related Links

    Keywords: Europe, Netherlands, Banking, Investment Firms, Basel, IFR, Reporting, LCR, LSI, Dividend Distribution, Regulatory Capital, Remuneration, AFM, CRR, DNB

    Featured Experts
    Related Articles
    News

    APRA Issues Interim Update to Policy Priorities for 2021 and Beyond

    In a letter addressed to the industry, the Australian Prudential Regulation Authority (APRA) set out an updated schedule of policy priorities for the banking, insurance, and superannuation industries.

    September 24, 2021 WebPage Regulatory News
    News

    EC Adopts Solvency II and Resolution Rules Package for Insurers

    The European Commission (EC) adopted a comprehensive review package of Solvency II rules in the European Union.

    September 22, 2021 WebPage Regulatory News
    News

    OCC Issues Booklets on Regulatory Reporting and Earnings

    The Office of the Comptroller of the Currency (OCC) issued Versions 1.0 of the "Earnings" and "Regulatory Reporting" booklets of the Comptroller's Handbook.

    September 22, 2021 WebPage Regulatory News
    News

    ECB Sets Out Results of Economy-Wide Climate Stress Tests

    The European Central Bank (ECB) published results of its economy-wide climate stress test, which aimed to assess the resilience of non-financial corporates and euro area banks to climate risks.

    September 22, 2021 WebPage Regulatory News
    News

    EBA Examines Implications of Increasing Use of Digital Platforms in EU

    The European Banking Authority (EBA) published a report on the use of digital platforms in the banking and payments sector in European Union.

    September 21, 2021 WebPage Regulatory News
    News

    HKMA Issues Updates on Policy Measures Intended to Ease COVID Impact

    The Hong Kong Monetary Authority (HKMA) published updates on the policy measures that were announced in context of the ongoing pandemic.

    September 21, 2021 WebPage Regulatory News
    News

    ISDA Responds to BCBS Proposal on Treatment of Cryptoasset Exposures

    The International Swaps and Derivatives Association (ISDA), along with several other associations, submitted a joint response to the Basel Committee on Banking Supervision (BCBS) consultation on preliminary proposals for the prudential treatment of cryptoasset exposures.

    September 21, 2021 WebPage Regulatory News
    News

    BIS Quarterly Review Discusses Developments in Fintech and ESG Space

    BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.

    September 20, 2021 WebPage Regulatory News
    News

    BCBS to Consult on Supervisory Practices for Climate Risks by Year-End

    The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards

    September 20, 2021 WebPage Regulatory News
    News

    OCC Identifies Operational Risk Deficiencies in MUFG Union Bank

    The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.

    September 20, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7494